Reference Number: CTAS-910
The County Financial Management System of 1981 contains the following provisions which are designed to ensure the integrity of the purchasing system:
- The finance director must verify budget appropriations before authorizing a purchase (T.C.A § 5-21-119(b)(6)(B))
- The finance director must establish a system of preaudit of invoices, purchase orders, or other documents, including a comparison with any encumbrance document previously posted or filed authorizing the obligation (T.C.A § 5-21-115(b)(2)).
- The finance director approves for payment only those invoices that are properly authorized and do not exceed the unencumbered balance of the allotments or appropriations against which they are chargeable (T.C.A § 5-21-115(b)(2)).
- Before any obligation against the county can be paid or any disbursement warrant or voucher issued, a detailed invoice, receivable copy of the purchase order, or other document indicating receipt of the merchandise or service is to be approved by the head of the office, department, or agency for which the obligation was made and be filed with the finance director (T.C.A § 5-21-115(b)(1)).
- The county is liable for payment of all purchases and supplies, materials, equipment and contractual service made in accordance with the provisions of the CFMS of 1981, but is not liable for payment of such purchases made contrary to it unless such item is specifically approved by the financial management committee (T.C.A § 5-21-120(c)).
- The director of finance is required to make a report showing the condition of the budget at the end of each month and present the report to the county legislative body. Each department head, elected official, and board member is furnished copies of monthly reports for their respective departments as soon as they are available (T.C.A § 5-21-114(a)).